20 April 2006
Independent broadband provider Biscit has become the first company to launch a cut price deal in reaction to a free broadband offer introduced by the Carphone Warehouse recently.
An industry expert suggests that it is just the first move in what promises to be a broadband price war.
"This is the opening salvo in the broadband price war sparked by Talk Talk's recent offer," said Chris Williams, broadband product manager at comparison and switching service uSwitch.com.
"Biscit is offering 720 minutes anytime calls to nationwide landlines each month, free calls to friends and family Biscit users and 8Mbps broadband for consumers signing up to their £19.99 phone line - but they should be aware that they will be locked into an 18 month contract."
The Carphone Warehouse's Talk Talk deal offers consumers free national and selected free international calls as well as a broadband connection.
"It will be interesting to see how long these offers can be sustained as inevitably companies will be making initial losses in their battle to sign up customers. We predict that other providers will have no choice but to slash their prices over the coming months in order to remain competitive."
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